No. 126, February 12th, 2009
Click here to subscribe!
Click here to unsubscribe!
|
|
XPRIMM
News - THE ROMANIAN INSURANCE MARKET NEWSLETTER No. 126, February 12th, 2009 Click here to subscribe! Click here to unsubscribe! |
| Powered by Media XPRIMM | |
| MENU: EDITORIAL | POINT OF VIEW | INTERVIEW | TOP PRESS | CEE, RUSSIA&CIS | FINANCIAL NEWS | EVENTS | |
| |
|
| EDITORIAL |
|
The same situation as with companies is also found, naturally, with individual clients. Thus, according to several specialists of the Romanian profile market, the reduction of the insurance costs may be based on the concept that: "If untill now there was no damage, although I have been paying the insurance for several years, it is likely I will not have any damage this year either, when I don't have much money for insurance anyway". Potential clients, hard to convince Moreover, besides people who give up their policies, there are also the potential customers that profile companies try to approach in terms of concluding an insurance. In this case, the situation is even more complicated, because people who are not insured and who have not received any compensation, fiind it quite difficult to understand the need for insurance, especially when incomes don't grow, and they are even reduced. This perception of customers, both retail and corporate ones, will be reflected to some extent in the volume of insurance premiums this year. Of course, besides this, regarding the insurance perspective, there is also the objective aspect, which refers to the reduction of the production companies' activity, which will also affect the services business. The strong reduction of car sales in the whole European Union is a good example, in this regard - Romania being in the same situation. This decrease in sales, according to specialists, will have a significant negative effect on the Romanian insurance market, with the motor insurance segment representing over 60 percent. The best time to buy an insurance ... However, specialists believe that giving up this last chapter in times of crisis is not the best approach, as the role of insurance rises during unfavorable times. The explanation for this statement is that, during such a period, it is harder for the clients to find funds to replace the destroyed property following a damage, in case there is no insurance for it. Several experts in the field underline, in this case, the role of the insurance broker, who should advice customers that want to reduce their insurance costs to chose alternatives that will not leave them exposed to important risks. by vlad.panciu@mxp.ro |
Insurance
PROFILE Review Click here to order! 
 |
 
|
|
|
| INTERVIEW |
|
Interview
with Constantin TOMA: The Romanian insurance market still has a high growth potential and the penetration degree of insurance products in the GDP is still small, about 2%, way below the Western European level. Insurance density per individual in Romania has a value of about 70 EUR, while in Austria, for example, over 2,000 EUR. These elements lead us to believe that the insurance market will keep the line of development slightly upward in 2009, but will not record a spectacular growth. I would also like to mention that in our market competition is not directed toward increasing each company's services quality separately, but rather is directed to achieving a higher market rate at any sacrifice, which led to very large losses, especially in the motor insurance area. There have been many companies that tried to steal higher market share with lower prices. After three years of acting this way, the effects are seen in recorded losses. After the shareholders have repeatedly announced that they no longer wish to capitalize insurance companies (who have too much capital for the volume of activity that they develop), we have been all aware that solving these problems and improving the industry climate profile can come only from inside the market, through joint effort of all players, by adopting strategies that respond to current economic conditions and interests of our investors. This financial crisis opened our eyes in a way. We received a global signal on how to behave, to protect and to act in a market. On the other hand, Romanian companies' shareholders are very careful in supporting other companies that are bringing losses and we all woke up facing the truth. If this year the necessary measures are not taken, if we will not apply tariffs on a serious actuarial background, if we will not operate with minimum administrative costs and properly calculated commissions, if we will not properly size organizations, we will continue to make losses, which will be increasingly difficult to cover in this difficult economic context. XPRIMM: What are your objectives for 2009? C.T.: The main objectives that we have in mind this year are increasing the company's profitability, along with keeping current customers. We want to keep our customers on a long term. We also have in mind a decrease in the motor insurance portfolio share and the development of other non-motor industries. XPRIMM: What do you consider to be the main insurance policies utility in the context of the current global economy? C.T.: Insurance policies prove their utility in difficult economic situations as well. I am convinced that, in such a crisis situation, people will realize that there are in each one's life some material goods they need to protect. XPRIMM: What are the strengths that your company has compared to the competition? C.T.: OMNIASIG is an organization that has not made any rebate from a correct tariff policy, a product portfolio developed in line with market needs and demands and permanently preserved the quality standards appropriate to a top international insurance group such as VIENNA Insurance Group. All these elements can also be seen through the evolution results in a permanent increase registered by the company in the recent years. We always strive to be an extremely serious company and, especially, to stay always on the podium. These targets were always found in our strategy on medium and long term. |
|
|
|
Click here to read more! Dragos CABAT |
 Dragos CABAT President CFA Romania and Managing Partner FINANCIAL VIEW |
|
|
| TOP PRESS |
|
FIAR Registrations for 2009 are in full swing 46.8% of the underwritings - concentrated in Bucharest INTERAMERICAN gives up the portfolio of general insurance AON Romania rises with 20% in 2008 Radu VASILESCU and UNITA broke up UNIQA invests EUR 45 million in UNITA EUREKO Romania's agenda for 2009 The Bucharest motor park rose by 20% CLAL Romania increases its capital with EUR 4 million
|
 |
 |
|
|
| CEE, RUSSIA&CIS |
|
STANDARD & POOR's increased the ratings for Re POLISH Results of Ukrainian Insurance Market for the Year 2008 VIG RE exceeds expectations EUROINS Insurance Group acquired Turkish INTER Sigorta The Annual International Conference on Risk Management in Almaty All-Russia Conference on Reinsurance has come to its 13th edition |
|
|
|
|
| FINANCIAL NEWS |
|
Romanian bonds have the highest yield in the EU Industry turnover up 5.4 percent in 2008 CINTEZA, NBR: Solvency is relatively high in the banking system |
|
|
|
| EVENTS | ||
|
|
|
THE EDITORIAL STAFF: |
 |
|
| XPRIMM
News - The Romanian Insurance Market Newsletter is best viewed with
an active Internet connection. Click here to subscribe! Click here to unsubscribe! |
|
| |
